The Challenge For President Elect Obama — Health Care

This is a fitness blog, with the intent of focusing on all aspects of health care including weight loss, physical fitness, and preventative health care.  The state of our health care system presents as significant of a challenge to managing our health as our choices in food.  It is a central challenge in the lives of most Americans.  With the election now over, for better or worse, the American public has spoken out in favor of Obama, and one aspect of this decision is the potential impact on our health care system.  With that in mind, let’s consider what we might be able to expect from our new President.

According to the health care document on Barack Obama’s website, approximately 47 million American lack health insurance, with more at risk of losing their coverage due to the current economic challenges.  According to his site, he wants to:

1. establish a new public insurance program for Americans who do not qualify for Medicaid or SCHIP
2. create a National Health Insurance Exchange for those who want to purchase private health insurance
3. require all employers to either provide health insurance, or contribute to the new program
4. mandate coverage for children
5. open existing programs to more individuals

With the expanded Democratic majority in the Congress, we would have expected early movement on this front.  He has claimed that his plan would, on average, lower health insurance premiums by $2500/year.

What Will Actually Happen?

According to The Tax Policy Center’s Blog, sources close to Obama have been passing the word that we should not expect reform in a first term of his presidency.  Instead, he will focus on expanding SCHIP.  What?  Why the shift away from the grandiose plans cited in the debates?

The financial circumstances of our country hold the answer to this question.  According to the Congressional Budget Office, health care represented 16% of GDP 2007, and expect spending to rise to 25% of GDP in 2025.  This is not sustainable.  The problem is significant enough that the CBO lists it as our nation’s central fiscal challenge.  Something is going to have to change, and it will have to happen sooner rather than later.  Our government officials must work together to find a way to reign in the rate of spending growth.

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